Barriers and Challenges to Developing Renewable Energy Projects Eric R. Bjorkman Sustainable Energy Conference 2010 Powering Idaho's Future 19514242.1

Overview of Project Development Issues Site Selection and Acquisition Permitting & Approvals Financing Power Sales / Transmission / Interconnection Agreements Construction / Infrastructure Operation and Maintenance Agreements 19514242.1

Site Selection Issues Availability of the Resource Transmission to the Grid Regulatory Approvals Public Opposition/Support Environmental Constraints 19514242.1

Site Selection – Location of resources Wind, geothermal, biomass and solar resources are limited to specific geographic areas. Wind – Central Plains, Coastal Regions Solar – Southwestern States (AZ, NM, CA, NV, UT, TX) Geothermal – Western U.S. Biomass – North Central U.S. and West Coast Resource location impacts regulatory jurisdiction 19514242.1

Site Selection – U.S. Wind Resources Source: www. http://www.nrel.gov/gis/ 19514242.1

Site Selection – U.S. Solar Resources 19514242.1

Site Selection – U.S. Geothermal Resources 19514242.1

Site Selection – U.S. Biomass Resources 19514242.1

Site Acquisition Issues Fee, Lease or Combination Private State Federal Access issues Lines and substations Roads 19514242.1

Siting & Permitting Bodies Federal State Local 19514242.1

Federal Permits & Approvals Federal Permits or Approvals Required? Federal nexus Federal lands Accessing federally owned transmission lines Regulatory nexus (e.g., jurisdictional waters, incidental take, etc.) 19514242.1

Federal Permits & Approvals Permit/Approval Agency Applicability Migratory Bird Treaty Act U.S. Dept. of Interior Determination of federally protected species or their critical habitat in the area. Permit is required to remove species. Avoid kill, injury to protected species without a permit. Bald and Gold Eagle Protection Act Permit is required to remove species. Avoid kill, injury to eagles without a permit. Determination of Exempt Wholesale Distributor Status Federal Energy Regulatory Commission Self-certification.

Federal Permits & Approvals Cont. Permit/Approval Agency Applicability Federal Aviation Administration ("FAA") Hazard Determination FAA Applicable if structure height is at or above specific threshold and dependent upon distance to nearest airport. Clean Water Act ("CWA") 402 Permit (Storm Water Discharge) EPA R10 Potential discharge from construction or operation. CWA 404 Permit (Dredge and Fill) U.S. Army Corps of Engineers ("Corps") Applicable if construction (dredge/fill) in jurisdictional wetlands or other waters of the U.S.; Activity may be covered under a Nationwide Permit ("NWP").

Federal Permits & Approvals Cont. Permit/Approval Agency Applicability Environmental Assessment or Environmental Impact Statement EPA/Corps Applicable if individual Section 402, 404 or other federal permit is required. Endangered Species Act of 1973 ("ESA") Fish & Wildlife Service ("FWS") Applicable if required in conjunction with federal permits (e.g. 404 permit) or if "take" or adverse modification of critical habitat for listed species appears likely. Historical/Archeological consultation (National Historic Preservation Act) Federal permitting agency and State Historical Preservation Office ("SHPO") Applicable if required in conjunction with federal permits (e.g. 404 permit). CERCLA IDEQ/EPA Applicable if storage or release on or from site of materials identified as hazardous substance.

State Permits & Approvals No state facility siting authority in Idaho State considerations / requirements Stream Channel Alteration Permit Well Drilling Permit Electrical Permit Over Legal Load Limit Permit Aeronautics Permit Air Quality Permit Water Rights 19514242.1

Local Permits & Approvals Comp Plan/Zoning SUP Construction permits 19514242.1

Legal Challenges to Renewable Projects Environmental challenges can be made to any renewable technology Wind: Endangered Species Act, Migratory Bird Treaty Act, Bald and Golden Eagle Protection Act Solar: Large area requirements invite ESA and Environmental Impact Statement challenges Geothermal: Waste water and underground injection issues Nuisance A condition that substantially interferes with the use and enjoyment of land by causing unreasonable discomfort or annoyance to persons or ordinary sensibilities An interference with the private use and enjoyment of another's land is unreasonable when the gravity of the harm outweighs the social value of the activity alleged to cause the harm Key element for a nuisance claim is unreasonable interference; the test is not "no interference" 19514242.1